The government has given great relief to the middle class in Union Budget 2025. The Finance Minister announced to make income tax rules easier. They have also reduced tax. Now there is no need to pay tax on income up to Rs 12 lakh annually. There is no need to pay tax on income up to Rs 12.75 lakh annually for the jobs. Apart from this, he has also changed the slab of income tax. With this, people with more income will also have to pay less tax than before. But, the condition is that all these benefits will be available only to those who will use the new regimen of income tax.
Interest will increase in the new regimen
Tax experts say that Finance Minister Nirmala sitharaman The announcement of February 1 will make a big difference. According to the government’s data, the new regimen of income tax (New regime of income tax) About 72 percent of individual taxpayers are now being used. This is the impact of the announcement in the union budget in the Union Budget in the last few years. This time, the announcement made by the Finance Minister, people are sure to increase interest in the new regimen. The government also wants this.
Focus on making tax rules easier
The government’s effort is to make income tax rules easier. For this purpose, the government announced a new reizards of income tax in 2020. Initially, taxpayers did not show much interest in it. However, in the last 1-2 years, the interest of individual taxpayers has increased. Finance Minister Nirmala Sitharaman said on 1 February that she is going to present the new Income Tax Act in Parliament next week. Through this act, the government will make tax rules easier.
Benefits of Old Tax Regim
The biggest attraction of the Old Rizim of Income Tax has been deduction in it. It mainly contains four different types of tax benefits. Under Section 80C of the Income Tax Act, deduction of up to Rs 1.5 lakh is available in a financial year. The most individual taxpayers use this deduction. After this, deduction is available on the health policy under section 80D. A person under the age of 60 can claim deductions up to Rs 25,000. A person above 60 years of age can claim deduction of Rs 50,000. The third tax is found on the benefit home loan. It is found in two ways. The first is found on the interest of the benefit home loan. Its limit under section 24B is Rs 2 lakh.
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Which benefit you more?
Tax benefits are also available on the principal amount of home loan. However, it is found under section 80C. About a dozen investment options already come under 80C. These include PPF, ELSS, Life Insurance Scheme, Sukanya Samriddhi, in which a large number of people invest. After this, HRRA Exigience is also available to the jobs in the Old Regime of Income Tax. This provides more benefits in Old Rizym for many taxpayers. Tax experts say that after the change in the new regimen on 1 February, the old regimen is no longer beneficial for those who have not taken home loans.